LIC bags record Rs 50 crore premium deal during demonetisation

While India reels under the dark clouds of demonetisation, the Life Insurance Corporation (LIC) has managed to bag a policy with the highest premium ever.

The Dadar branch of the LIC has snagged a record premium of Rs 50 crore from a businessman with real estate interests for a Jeevan Akshay plan, the Times of India reported.

The plan has been attracting buyers due to its record sales on November 30 - the last day of the scheme before rates were revised and the yield was reduced to 7% from 7.5% earlier for an individual who is 50, the daily reported. The report added that on 30 November, LIC had mobilised over Rs 2,300 crore.

Usha Sangwan, MD, LIC told TOI that the corporation has done very well in November with premium collections of around Rs 8,000 crore. "We are already showing a growth of 104% in a month and we have achieved close to 70% of our annual target thanks to Jeevan Akshay."

"Jeevan Akshay was offering 12% before 2000 under the lifelong annuity plan yet there were not many takers.This was because banks were offering 13% at that time and there were company fixed deposits with 14% returns.What people do not realise is that annuity income is guaranteed for life. Even if in the short-term there are instruments offering higher returns, in the long-term, interest rates are expected to come down," TOI quoted Anand Jathan, agents at LIC as saying.